Correlation Between Teladoc Health and Autodesk
Can any of the company-specific risk be diversified away by investing in both Teladoc Health and Autodesk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Teladoc Health and Autodesk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladoc Health and Autodesk, you can compare the effects of market volatilities on Teladoc Health and Autodesk and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Teladoc Health with a short position of Autodesk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladoc Health and Autodesk.
Diversification Opportunities for Teladoc Health and Autodesk
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teladoc and Autodesk is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Teladoc Health and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and Teladoc Health is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Teladoc Health are associated (or correlated) with Autodesk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autodesk has no effect on the direction of Teladoc Health i.e., Teladoc Health and Autodesk go up and down completely randomly.
Pair Corralation between Teladoc Health and Autodesk
Assuming the 90 days trading horizon Teladoc Health is expected to under-perform the Autodesk. In addition to that, Teladoc Health is 2.64 times more volatile than Autodesk. It trades about -0.02 of its total potential returns per unit of risk. Autodesk is currently generating about 0.11 per unit of volatility. If you would invest 29,087 in Autodesk on September 14, 2024 and sell it today you would earn a total of 17,787 from holding Autodesk or generate 61.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teladoc Health vs. Autodesk
Performance |
| Timeline |
| Teladoc Health |
| Autodesk |
Teladoc Health and Autodesk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teladoc Health and Autodesk
The main advantage of trading using opposite Teladoc Health and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladoc Health position performs unexpectedly, Autodesk can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Autodesk will offset losses from the drop in Autodesk's long position.| Teladoc Health vs. Fundo Investimento Imobiliario | Teladoc Health vs. LESTE FDO INV | Teladoc Health vs. Fras le SA | Teladoc Health vs. Western Digital |
| Autodesk vs. Arrow Electronics, | Autodesk vs. Prudential Financial | Autodesk vs. Warner Music Group | Autodesk vs. Capital One Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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